Covid19: Will Your Medical Insurer Accept Liability?

By Kalanzi Ssebamala Simon

By now, you may just be familiar with the term COVID-19, a pandemic that has brought the world to a standstill. At the time of compiling this article, confirmed cases stood at 1,724,736, recoveries at 390,335 and deaths at 104,938. The disease which was first reported to the World Health Organisation in December 2019 first manifested in Wuhan, China in November 2019 but has quickly spread to almost all parts of the world with the United States now the epicenter having 507,422 confirmed cases and 19,602 deaths.

All economies and businesses have been badly hit by the pandemic. Several countries have cut their economic growth projections, cut spending in several sectors and channeled this towards health care and some have gone into full lockdown in a bid to prevent further spread of the corona virus. Businesses too have been heavily affected as they have failed to access credit, lost income and some have been forced to take drastic measures like laying off staff. The pandemic has spared no business from grounded airlines to closed malls and public transport operators.

However, as the pandemic continues, there will be special focus on insurers and how they step in to lend a helping hand. Generally, medical insurance policies exclude pandemics because of their catastrophic nature. However, the Insurance Regulatory Authority of Uganda (IRA) has engaged medical insurance providers to extend their policy coverage to Covid-19, something that should give those insured peace of mind. Cover details in terms of level of cover may differ from one provider to another. This could be something done by the insurance industry in a bid to break away from the status quo and show the public that the industry can adjust with changing risk trends.

In more developed insurance industries, careful assessment and research have been done so as to provide coverage for the risks that have had greatest impact on society. In South Africa for instance, one company introduced an HIV Life Insurance Policy of up to R10 Million HIV cover, extension to a health monitoring programme and a 24 hour HIV helpline for clients. This after, the devastating effects HIV/AIDS had on the country’s population.

The step taken by the Insurance Regulatory Authority of Uganda and medical insurance providers is one in the right direction to impact positively on the industry’s public image. It is from this that more research can be done so that insurers provide solutions demanded by the public rather than the public having to choose from the limited range of solutions available.

Carrying out extensive research on risks faced by the population, designing risk management solutions tailor made to counter those risks and taking them to the public will be the key to increasing Uganda’s insurance penetration which currently stands at 0.8%.

Until next time, stay safe and have peace of mind with the assurance that your medical policy will come into play should you unfortunately contract Covid-19.

Underwriting Assistant –  ICEA Life Assurance Company Ltd